Tuesday
September 2, 2014

Homework Help: economics

Posted by Tinu on Tuesday, November 21, 2006 at 8:03pm.

Consider the price strategy of Delta Airlines for its Detroit-to-Philadelphia route. In this game spirit is a potential competitor along the same route. Spirit will make competitive profits on less-popular routes if it does enter the market for this service. The matrix representing this game is as follow:

Delta
Low Fare High Fare
Spirit Enter 0,0 5,10
Stay out 2,20 2,25

1.Is there a dominant strategy for either of the two companies? If so, what is the respective strategy?

2.Is there unique Nash equilibrium? If so what is it?

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

economics - Consider the price strategy of Delta Airlines for its Detroit-to-...
economics - Consider the price strategy of Delta Airlines for its Detroit-to-...
Economics - An airline has a low marginal cost per passenger of $30 on a route ...
math - during a triathlon, Sharon swims 1/4 of the total route and cycles 3/5 of...
math - during a triathlon, Sharon swims 1/4 of the total route and cycles 3/5 of...
Economics - Some games of strategy are cooperative. One example is deciding ...
managerial economics - 1. Some games of strategy are cooperative. One example is...
Economics - Assignment 3 1. Some games of strategy are cooperative. One example ...
Philosophy1 - Locke says, “Make these intervals of memory and forgetfulness to ...
economics (game theory) - Consider the normal tick tack toe game, but this time ...

Search
Members